CEvery time a vacancy arises in a company, a process begins within it to find the ideal candidate. In order to achieve the best possible fit between the new employee and the organization, it is necessary that the recruitment phase is well planned from start to finish. For this, there are metrics in the selection process.
For this, actions must be carried out such as making a good job description to be clear about what is offered to potential new employees and what is needed by the company. Beyond this, another of the important moments in the selection strategy design is the determination of metrics to be taken into account to measure the success and quality of recruitment.
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What are the metrics in the selection process?
Metrics are data whose analysis allows us to analyze the performance of a certain action.
Recruitment or selection metrics are that set of information based on which we can check if the process of selecting and hiring new employees is being as efficient as it should be.
Today, knowing these data is much easier thanks to the help of computers. Big Data allows us to analyze a large amount of data in just a few minutes, as well as draw conclusions based on it.
The importance of these metrics is easy to understand if we consider the current context. Despite the high unemployment figures, most companies still have trouble finding the right candidates. In the labor market there is a real struggle between organizations to attract and retain talent.
All corporations want to have a workforce made up of quality employees, and they look for ways to achieve it.
Using recruitment metrics is a simple and quick way to know what is being done well within the selection and hiring process, and what is not being done correctly. This allows design much more effective strategies that will result in the formation of high-performance work teams within the company.
Internally, the metrics allow the Human Resources department to evaluate how the hiring process is going and detect possible inefficiencies. But they can also be useful in shaping diverse and inclusive teams, giving rise to a selection process that is fairer for all those who participate in it.
Hiring and ROI
The recruitment and hiring process has a cost for the company. Actually, more than a cost is an investment. Because what the organization expects is that the new employee contributes to improving productivity, thus generating economic benefits. That is, there is expected to be a return on investment (ROI).
If the hiring has been adequate, after a while, the new worker will carry out his work effectively and will contribute to making the company more profitable. But what if this doesn't happen?
In cases where the organization has made an investment in selection and hiring, but for some reason the candidate has turned out not to be the best fit for the role, there will be no such increase in profitability. The ROI will be low, or even zero.
It's more, the company could lose money. Because, if there is no good adaptation of the new employee to his position, either he or the company itself will end up terminating the employment relationship. This implies that a new recruitment process will have to be started, which implies a new expense.
The better the company knows about the recruitment process it carries out, and what aspects determine its quality, the easier it will be to get it right the first time when hiring new employees.
Metrics are the best tool to get that information, but there are a lot of them. Let's take a look at some of the most important ones to keep in mind.
Hiring time as one of the metrics in the selection process
It is estimated that the average time it takes for companies to fill a vacancy ranges between one and three months. This is the period that elapses between the publication of the job offer and the signing of the contract with the new worker.
There are many factors that can influence the hiring time, but one of the most important is the relationship between supply and demand. If companies are offering many similar positions, but there are not too many people who fit the profile sought, it will take longer to find the right candidate.
For a company, it is vitally important to know how long it will take (on average) to fill a vacancy, because every day that the position is unfilled is decreasing the profitability of the business.
The objective to achieve is that the contracting time is as short as possible, but without sacrificing the quality of the selection.
Corporations can search for candidates from different sources:
- Professional social networks like LinkedIn.
- Ads on job search web platforms.
- Recruitment agencies.
- Press announcements.
- Through your own employees.
Each source can be more or less efficient when searching for certain candidates. For example, if you are looking for profiles that are not very qualified, job search web platforms usually give good results. On the other hand, if you are looking for a very specific and qualified profile, word of mouth from the employees themselves can attract very valuable candidates.
The company must be clear about what recruitment sources are available to them and how effective they are for each type of position. This will make the process more efficient, since will go directly to those where it is known that there are more possibilities of finding the right candidate.
New employee turnover rate as one of the metrics in the selection process
When it comes to employees who have just joined the organization, it is important to know their turnover rate during the first year.
The ROI of the hiring process can take a while, because everyone needs a longer or shorter time to adapt to their new position and start working as efficiently as possible. However, if that moment lasts too long, it is a sign that something has gone wrong.
As we said before, the normal thing in these cases is that the company decides to do without the worker, or that it is the worker who makes the decision to leave of his own free will. Which increases the turnover rate.
It is understood that, if the employment relationship ends within a year of its beginning, it is that the fault has been in the selection process. The chosen candidate was not the most suitable. This translates into an increase in expenses for the company, which must address the costs associated with the end of the employment relationship with its employee and, in addition, the cost of carrying out a new recruitment and hiring process.
By analyzing the turnover rate of the first year, we can evaluate how efficient the selection process is, as well as detect possible flaws in it that will have to be solved.
The objective is that the new employees who arrive at the company are well integrated into it. Because this will allow the employment relationship lasts for a long time, reducing costs for the organization and, at the same time, increasing its ROI.
Candidate Job Satisfaction
One of the best ways to know if the new employee is satisfied with the job is to ask them directly. To do this, we can use the job satisfaction surveys.
If the level of satisfaction is high, it is synonymous that the selection process was well planned and carried out in the most appropriate way.. On the contrary, if satisfaction is low, it indicates that something has gone wrong.
A good way to increase job satisfaction is offering a vision as realistic as possible of the job offered, highlighting both its pros and cons. This is something that can be done in the personal interview, and it will help the candidate to form a better idea about whether or not they will feel comfortable working in that organization.
Manager satisfaction as one of the metrics in the selection process
It is also important to know the level of satisfaction of the manager or direct boss of the person hired. If he is satisfied with the new member of his team, it is that the recruitment has been carried out effectively.
The manager's opinion is important because if the manager is happy, the employee is likely to be too., which shows us that a successful contracting has been carried out.
There are other important metrics such as absentee rate, average number of applications submitted, job offer acceptance rate, etc. But these that we have seen are the top five.
Regardless of the metrics chosen to assess whether recruitment is being effective, we must not forget that their true power lies in the information they offer us. Through them we can see what is being done wrong. So, improving its metrics is in the hands of the organization itself, which must make changes to achieve better results.
Hirint adapts to each organization integrating itself in any part of the selection process, helping to improve all the metrics of the selection process, increasing the ROI of your company. Book a meeting with us HERE